|CAD per share|
Riocan REIT paid a total dividend of 458 million CAD last year, for a market capitalization of 8,515 millions. Dividend per share of Riocan REIT is 1.41 CAD, and his stock market price 26.20 CAD.
According to the chart below, where dividend yield is displayed, Riocan REIT has a dividend yield of 5.38%, which is higher than the amount offered by both the market average and companies from Canada. It is also bigger than average of Financials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.
About the ability of Riocan REIT to maintain his current dividend of CAD 1.41 per share, an amount that accounts for 5.38%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Riocan REIT payout on ernings is currently 55.95%, which is higher than the market average, and companies of Financials industry, which are 39.68% and 44.73% respectively. Both figures show that Riocan REIT can have problems to keep with his present dividend yield.
The payout on earnings should be complemented with the payout on cash flow since it is this latter amount the one which can be distributed to shareholders. Cash flow per share of Riocan REIT is CAD 1.40 per share, which is lower than the dividend per share paid by the company of CAD 1.41, so the company does not generate enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Riocan REIT, compared againt world market average, Canada companies, Financials industry and Real Estate Investment Trusts sector companies. You might also need to check full financial report of Riocan REIT.
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